Presentation by Sebastian F. D. Heinrich, E.M.B.L.-HSG 16 January 2019

1. Experience from a top tier service providerEvolution of the corporate clients’ needs & expectations in terms of legal services Presentation by Sebastian F. D. Heinrich, E.M.B.L.-HSG 16 January 2019

2. A new era of challenges and trends for many in-house L&C departments 02 01 Regulatory Demands Business Pressures Legal Entity Migration, Ringfencing, MiFID II, Recovery & Resolution, LIBOR, GDPR, Uncleared Derivatives Margining etc. Brexit, Low Interest Rates, Increased Cost of Funding, Leverage Ratios, Non-industry competition, Depressed client flows More for Less 03 04 Increases in… Reductions in… • Volume, Scope, and teeth of regulations • Requirement of broad, accurate, legal data • Compliance & Reporting Requirements • Budgets • Headcount • Time PwC Flexible Legal Resources (FLR)

3. Reallocating work between categories yields step change efficiency Activities Traditional Model New Model • Exceptional events • e.g. litigation; corporate transaction Law firms/ Big 4 Law firms/ Big 4 Strategic work e.g. new products, new geographies Legal department Tactical work e.g. corporate governance; employment Lower complexity work e.g. high volume, semi-repeatable; due-diligence New capabilities + providers Legal department PwC Flexible Legal Resources (FLR)

4. The law firm on a diet – Overhead comparison Traditional Law Firm Alternative Legal Service Provider Expert Compensation Physical Overhead Pyramid Leverage PwC Flexible Legal Resources (FLR)

5. The focusshiftof in-house departments – Re-adjustmentofperspective Traditional Focus of Hiring New Focus of Delivery …toworktobedone Fromjobstobefilled… Work (task) Job (role, function) PwC Flexible Legal Resources (FLR)

6. The rise of GC production-system thinking • Future Target Operating Model (TOM): • Align resourcing models with nature of work • Multiple ways to execute (“how”) • Tech follows, not leads, process industrialization Current Mix of Work Target Mix of Work PwC Flexible Legal Resources (FLR)

7. The state of play in the legal industry Legal Tech New Patents Filed Globally +500% ~$730Bn 2019 Global Legal Services Market ~$490Bn Corporate Legal Spend ~$5Bn Estimated Global Legal Tech Spend <1% of total Corp. Legal Spend Technology is the fastest growing issue of “extreme” importance to CLO’s … but today, only 59% rank as “extremely” or “very important” Source: ACC Chief Legal Officers 2017 Survey PwC Flexible Legal Resources (FLR)

8. Technology onlyaddressesthetipoftheiceberg Technology Culture PwC Flexible Legal Resources (FLR)

9. Thank you for your attention! Sebastian F. D. Heinrich, E.M.B.L.-HSG Senior Manager, Client Management & Buisness Development Lead of PwC’s Flexlible Legal Resources Switzerland PricewaterhouseCoopers AG Birchstrasse 160 8050 Zurich +41 58 792 14 32 +41 76 298 23 24 sebastian.heinrich@ch.pwc.com www.pwclegal.ch / www.pwc-flr.com https://www.linkedin.com/in/sebastian-f-d-heinrich/ PwC Flexible Legal Resources (FLR)

10. Appendix I LegalTech

11. Legal Tech – Categories & players Alternative Legal Service Providers* 1 2 3 4 5 6 7 8 *Other LegalTech Mappings you find under: http://www.swisslegaltech.ch/mapping/ or https://legaltech.weblaw.ch/provider/map PwC Flexible Legal Resources (FLR)

12. Impact areas of LegalTech 01 Analytics Companies that use artificial intelligence to summarize legal documents. Enables compliance professionals to understand their organisation's legal obligations. 02 Compliance 03 Document automation Gives legal professionals an easy to use and powerful document discovery platform. Any process in where electronic data is searched and obtained for use as evidence in a civil or criminal case. 04 e-discovery 05 Legal Education These programs are used by attorneys to help preparetheir clients to testify in depositions. A variety of online research companies catered to the legal industry. 06 Legal Research 07 Marketplace Startups that provide a range of online legal services to consumers and businesses. Tool and interface for two parties who are entangled in a dispute or some other type of conflict. 08 Online dispute resolution Companies here provide billing, time, and contract-management tools to law firms. 09 Practice Management PwC Flexible Legal Resources (FLR)

13. Mapping the LegalTech Landscape • There are about 800 larger legaltech companies in the world, where 40% were founded in the last 3 years. • Document automation and practice management are currently the most competitive sub-sectors. • There has been a 484% increase in the number of patents filed covering new legal services technology globally in the last 5 years. Top three countries by percentage of total patents filed are the US (38%), China (34%) and South Korea (15%). 102 48 13 0 15 12 2 140 111 4 10 29 4 23 28 3 2 37 1 0 28 1 4 8 9 1 2 Compliance Document automation e-discovery Legal Education Practice Management Marketplace Online dispute resolution Analytics Legal Research PwC Flexible Legal Resources (FLR)

14. Horizons of technology disruption 15 Super computer – quantum, neuromorphic Autonomous super systems Advanced robotics – cyborgs, swambots Other (Super society) Autonomous systems – cars and drones Nano-tech 3D/4D printing Blockchain 5 AV/VR Biometric identity Deep learning Reinforcement learning Beyond (Smart ecosystems) Time in years to peak of adoption Natural language processing Large scale machine learning 3 Cybersecurity Hybrid cloud Containers IoT Robotics Cloud Big data Early machine learning Different (Cloud) Data analytics Social 0 Mobility Visualisation Past (Internet) Networking www now 1995 2025 Time to exponential technology breakthrough point Source: dimensions data via @mikequindazzi PwC Flexible Legal Resources (FLR)

15. Appendix II PwC Legal

16. Wearethelargest Legal Services Network ofthe World Switzerland Global* CEE Europe & UK Basel Zurich St. Gallen Zug Maghreb Liechtenstein North America Lucerne Berne Caribbean Lausanne Central Africa Asia Central America Middle East Geneva Lugano South America Sub-SaharanFrancophoneAfrica Southern Africa > 230’000 professionals > 155countries > 3’500 professionals > 14 offices > 3’600 legal consultants / 1’000 Flexible Legal Resources > 98 countries / 254 offices > 80 legal consultants / 100 Flexible Legal Resources > 10 offices PwC Flexible Legal Resources (FLR) *Note thatwecurrentlydon’toffer legal serviceswithinthe US

17. Legal Advisory Offering Overview Corporate Law Employment Law M&A Legal & Compliance • Legal support in setting-up the right corporate structure individually and group wise • Advice on the legal documentation required • Support in reflecting restructurings / transactions in proper contracts / amendments • Set-up the various types of contracts taking into account the Tax and TP aspects • You would like to have your basic employment law documents such as employment agreements, staff regulations, etc., reviewed or re-drafted. • You have questions related to employment law, such as holidays, working time, salary continuation and other topics. • You need support in connection with the dissolution of an employment contract, termination agreements or letters of reference. • You need proactive assistance in connection with the international deployment of employees when drafting and implementing secondment agreements, or work permits. • Advising on transaction structure. • Buy-side legal due diligence. • Vendor legal due diligence. • Drafting of transactional documents. • Support in contract negotiations. • Procurement of permits from competent authorities. • Preparation for closing and post-transaction legal advice. • Support you regarding GDPR (EU General Data Protection Regulation). • Consulting: Check of the major risks in your company, advise on key compliance issues, etc. • Data protection: Review and assessment of your data protection risks, design and set up of an appropriate data protection framework. • Management: Development of incident reporting systems, Design of appropriate policies and guidelines, etc. PwC Flexible Legal Resources (FLR)

18. Legal Advisory Offering Overview Intellectual Property Law Immigration Law International Business Reorganisation Financial Services Regulatory & Compliance • Developing – we establish deep-rooted strategies for your IP assets. • Capturing – we have the ability to structure worldwide IP protection. • Maintaining – we monitor your IP rights and ensure protection is adequate to business development. • Policing – we provide a worldwide watch service that ensures the recognition of your IP rights. • Commercializing – we support the commercialisation of your IP assets by providing a full range of agreements. • You have general questions concerning the legal provisions on foreign nationals. • You have questions related to employment law, such as holidays, working time, or salary continuation. • You have to file applications for work and residence permits for citizens of EU/EFTA states or third-countries. • You want to correctly register short-term workers from EU/EFTA states. • You have to apply for entry or return visas or have questions on the Swiss settlement permit. • You are confronted with special issues such as hardship cases, HR outsourcing or setting up new fields of business in Switzerland. • Central oversight, expert experience and knowledge for coordinated global support. • Maximised speed of delivery and efficiency. • Consistent service and quality assurance across jurisdictions. • Optimum cost structure, budget certainty and predictability. • The PwC Legal FS Regulatory & Compliance Services team is structured into five sub-lines of services that together support banks, insurance companies, and other Swiss and international financial intermediaries in all areas of financial market law. • The particular focus of our interdisciplinary team lies on providing advice and support throughout the process of implementing the new regulations. PwC Flexible Legal Resources (FLR)

19. Project & Portfolio Management (PPM) Offering Overview Portfolio Management Programme Mobilization Portfolio Maturity assessment PMO as a service (PMOaaS) Digital PMO AgileDelivery Provide a view on the clients ability to deliver their change portfolio or individual programs through a combination of interviews, documentation and a specially designed online assessment tool. Help clients deliver the best possible outcomes from their portfolio of transformational programs and projects, in alignment with corporate strategy. Set the shape and pace of a program and ensure the 12 Elements of Delivery Excellence are embedded, pointing the program in the right direction from the outset. PMOaaS is a managed service that delivers cost savings, quality improvement and transparency via a hybrid delivery model and technology enablement. Select, implement and operate digital solutions, including RPAs, real-time dashboards, advanced analytics and cloud-based project management systems. Implement Agile culture, tools and methods to help clients shorten development cycles, improve business / IT alignment, improve quality and lower cost. PwC Flexible Legal Resources (FLR)

20. Forensic Offering Overview Fraud, Investigations & Regulatory Enforcement (FIRE) Know the facts and respond to regulatory enforcement Forensic technology and analytics Uncover and manage evidence & enable critical insights Disputes, claims & settlements Successfully resolve disputes and settle claims Project & contract optimization Maximize the value of projects, assets and contracts Crisis management & strategic intelligence Ensure an organisation is prepared for, can respond to, and recover from threats • Investigations & Fact Finding • Regulatory Enforcement • Forensic Analytics • Digital Forensics & eDiscovery (DFeD) • Information Governance • Cyber Incident & Threat Management • Disputes • Claims • IP Rights & Contract Optimization • License reviews • Capital Project Delivery & Asset Management • Strategic Threat & Crisis Management • Global Intelligence • Fraud & Integrity Risk 02 03 04 05 06 01 What happened? Who is responsible? Who knew about it? Which processes andcontrols failed? What is the damage? Is there any damage to recover? PwC Flexible Legal Resources (FLR)